Is this just wishfull thinking??

Weizsler

I am currently sitting quiet happily on C&G's svr of 2.5%.

I have been keeping my eye on various deals while the BOE rate got lower and lower and it seems now that the mortgage deals got better and better in the banks favor The banks are now making more money than they ever were on fixed rates 18 months ago.

So is the money the banks are making now paying for the losses they made or are they just making extra on there current deals while they can.

If when the BOE rates start to rise what will the banks do. Will the deals ever get back to the way they were. Is this just wishfull thinking??

Please forgive me if my questions sound stupid im just trying to understand my situation.

_Andy_

Hi Weizsler

You need to remember that banks don't obtain their funds on the base rate - if you do a Google for 'swap rates' or 'Libor' that might help fill you in a bit.

dimbo61

Yes banks are trying to make back some of there losses so deals have got more expensive.
Best thing for you to do is save save and save some more!
fill your cash ISA allowance ( you should get over 3% ) then overpay the mortgage each month and also look at Regular savers